Currency Note US Dollar

Will the US default on its debt

By Ricky Bean October 11th, 2013

The US dollar endured further rough times at the start of this week, owing to the government shutdown in the country rumbling on, showing no signs of a resolution. As a result, with investors losing confidence over a deal being struck to raise the debt ceiling before the October 17th deadline, the dollar stumbled, losing ground on its major partners. This gloom was underpinned by the US House Speaker, who remarked that “that’s the path we’re on” when discussing the possibility of the US government defaulting on its debt for the first time in history. There was some light overnight as the Republicans are going to offer a short extension period to the debt ceiling to allow discussions and hopefully a resolution to be reached. Hope for the currency came from other sources on Wednesday, from the race for the next chairman of the Federal Reserve. President Obama nominated Janet Yellen, giving investors reason to believe the central bank will keep its policies to encourage the growth of the economy. Yesterday reverted to calmer waters, even with higher than anticipated unemployment claims, as they had little effect on the rates. Today rounds off the week with a preliminary consumer sentiment from the University of Michigan being the only majorly influential release, with its indication on consumer spending showing a good part of the economic activity. Call your trader now for the latest US dollar rates, following a week with numerous influences.